The proposed research analyzes economic and health services data in a framework appropriate to broad social questions about ongoing and proposed changes for mental health care. The central aspects of this work have immediate application to improve the efficiency of care depression. The distinguishing feature of the project is its synthesis of a health services research approach, with detailed measurement of processes of care and health outcomes for a clinically well-defined group, and an applied micro/labor economics approach, which considers broader non-health implications. Its central goals are a) to study the dynamics between mental health, insurance choice, wealth accumulation, labor market participation, and retirement inn the pre-Medicare population; b) to develop models of care for depression in usual care settings to predict the health and social consequences of changes in care; c) to develop the instruments to integrate labor economics and health services research approaches more closely in future studies.